McDonald’s Is A Fast Food Restaurant Started In The USA

McDonald’s Is A Fast Food Restaurant Started In the Usa It Has Enjoye

Mcdonalds Is A Fast Food Restaurant Started In the Usa It Has Enjoye McDonald’s is a fast food restaurant started in the USA. It has enjoyed its brand prominence by the company’s success in marketplace elsewhere. McDonald wants to enter the market in Saudi Arabia where the Holy place of the Islam has originated 1400 plus years ago. When the firm applies for a license to expand, the Food and Drug Administration in Saudi Arabia advises the firm to conduct a complete market analysis first and requires the firm guarantee all foods offered in the Saudi market must be in compliance with the “Halal” food certification. Please use our theories plus your own understanding to describe why this requirement is necessary for McDonald’s to operate in Saudi Arabia first; and then give us of your analysis of how and why the compliance with the “Halal” certification requirement will help to add values McDonald’s has offered not only in Saudi Arabia, but also in its restaurants in other nations.

McDonald's has a well-known brand name and reputation. When it wants to operate in Saudi Arabia it must analyze the Saudi market (y-axis). McDonald's must prepare their food in compliance with "Halal" food certification, because brand congruence has three layers: SIC, SAB fit with DAWN, and GEEB consistent with VIBS. Saudi Arabia is a 100% Muslim country, and in Islam it is prohibited to eat pork or any food prepared not in compliance with Islamic rules. So if McDonald's doesn’t comply with "Halal" food, no one will come and buy from it and it will lose a huge amount of money.

It has to make food consistent with our values, identity, and belief system which is Islam. From the In-Context (z-axis), every culture or nation has an Etic-Emic Account of conformance which guides peoples' behavior. Because of "Halal" food certification is part of Islam, then every Saudi or Muslim must has an Etic Account of Conformance, which is something that people share or have in common in a specific culture. McDonald's can add value to its brand equity by applying this certification in other nations even if it is not Islamic dominance. This "Halal" certification will attract the Islamic community or minority in every part of the world; this definitely will increase McDonald's market share and profits.

However, they cannot ignore the dominant culture, so for example in USA they cannot provide only "Halal" food and not providing pork. They will lose a huge number of their loyal customers. So, if they offer both options, they will keep their loyal customers and attract new ones.

Paper For Above instruction

The expansion of multinational corporations such as McDonald’s into diverse cultural and religious environments necessitates a profound understanding of local norms, regulations, and consumer preferences. In the case of entering the Saudi Arabian market, adhering to the “Halal” food certification is not merely a regulatory requirement but also a strategic move that aligns with Islamic values and enhances brand reputation within the local context. This paper explores the necessity of the “Halal” certification for McDonald’s operations in Saudi Arabia and examines how embracing this requirement can add value to McDonald's brand globally, fostering trust, loyalty, and market expansion.

Firstly, the mandatory compliance with “Halal” standards in Saudi Arabia stems from legal, religious, and cultural imperatives. Saudi Arabia is an Islamic nation where Islamic law (Sharia) governs daily life, including dietary laws. “Halal” certification assures consumers that food products meet Islamic dietary guidelines, which prohibit the consumption of pork, alcohol, and anything considered impure according to religious teachings. Failure to comply with these standards would lead to legal restrictions, consumer boycotts, and significant financial losses due to the alienation of the local Muslim population. According to Alserhan (2010), cultural relevance and religious adherence are critical for market acceptance and successful localization of international brands. Therefore, the government’s requirement acts as a protective measure, safeguarding consumer religious sensibilities, and ensuring that foreign companies operate within the bounds of local norms.

From a theoretical perspective, this requirement aligns with Hofstede’s cultural dimensions theory, particularly the dimension of ‘Power Distance’ and ‘Uncertainty Avoidance,’ which are highly relevant in Saudi Arabia. Countries with high power distance and uncertainty avoidance tend to emphasize strict adherence to norms and rules, including religious standards, to maintain social order. By complying with “Halal” certification, McDonald’s demonstrates cultural sensitivity and respect for societal values, which are essential for establishing legitimacy and trust in the local market. Moreover, the SIC (Strategic International Compatibility), SAB (Societal Acceptance of Business), DAWN (Deference, Authority, Wisdom, and Norms), GEEB (Glocal Ethical and Ethical Business), and VIBS (Values, Identity, Beliefs, and Standards) models indicate that brand congruence with local cultural and religious values enhances the firm’s strategic fit and societal acceptance (Hofstede, 2001).

In addition to legal compliance, integrating “Halal” standards into McDonald’s global branding strategy enhances perceived authenticity and social responsibility. The “Etic-Emic” framework of cultural analysis posits that shared cultural norms (“Etic”) are crucial for consumer acceptance; “Halal” certification exemplifies such shared norms within Muslim societies. For Muslim consumers worldwide, “Halal” certification signifies religious compliance, ethical standards, and social identity. Therefore, including “Halal” options signifies respect for cultural diversity and helps the brand connect authentically with Muslim communities, thereby expanding market share.

Furthermore, embracing “Halal” certification offers strategic advantages beyond Saudi Arabia. Globally, Muslim communities constitute a significant and growing demographic, representing approximately 25% of the world’s population (Pew Research Center, 2017). By adopting “Halal” standards, McDonald’s can appeal to Muslim consumers in non-Islamic countries, including the United States, Europe, and Southeast Asia. This approach not only broadens the customer base but also positions McDonald’s as a culturally inclusive and ethically responsible brand. Such positioning fosters consumer loyalty among Muslim minorities and aligns with corporate social responsibility initiatives, thereby enhancing overall brand equity.

However, operational flexibility is essential to balance local and global needs. In markets like the USA, McDonald’s cannot exclusively serve “Halal” foods and must offer products like pork and non-halal alternatives to cater to broader consumer preferences. Such dual offerings exemplify a “glocalization” strategy that respects local cultural nuances while maintaining global brand consistency (Rogers, 2015). This balance ensures that the brand remains relevant and inclusive, preventing alienation of loyal customers who may not adhere to Islamic dietary laws. Therefore, the integration of “Halal” certification does not undermine brand diversity but enhances it through strategic differentiation.

In conclusion, the requirement for “Halal” certification is essential for McDonald’s successful entry into the Saudi Arabian market, driven by legal, religious, and cultural considerations. Moreover, adopting “Halal” standards reinforces McDonald’s commitment to cultural sensitivity, ethical practices, and social responsibility, which can bolster its global brand equity. By respecting local norms and offering inclusive options, McDonald’s can build trust, loyalty, and expand its market share both within Saudi Arabia and worldwide. This approach exemplifies how cultural adaptation and strategic branding can create sustainable competitive advantages in the global fast-food industry.

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